1. U.S. Auto Sales Past, Present and Future
John Leaver
The McDavid Group

2. Sobre Mim
• Minha frase favorita?
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• 17 anos de experiência na indústria
automotiva
• Director of Field Operations and Social
Media Evangelist for The McDavid Group

3. 2012 “The Year of Recovery"
• U.S. Housing Market still on shaky ground
• Un-Employment remains at very high levels
– 7.8% (Seasonally Adjusted Dec. 2012)
• 3rd Quarter of 2012
– 14.5 Million SAAR
– Fastest Growth Since 1st Qtr. 2008
• Top Brands 2012
– General Motors
– Ford
– Toyota "The housing market is still on shaky ground. Unemployment
remains above 8 percent. The one flank of the U.S. economy
that’s marching steadily back is the sector that once seemed the
weakest: Automotive.” - Article on Bloomberg
*Wards, Huffpost Detroit, Bloomberg

4. What Happened??
• 14.5 Million Units Sold
– 2013 SAAR 15.4 Million
• Volkswagen increased over 35%
• Ford “Focused” on other vehicles
– F150 Best Selling Truck “ever”???
• Earth Quake affected Japanese Auto Makers
– Limited inventory hampered sales for Japanese Automakers
– Affected Auto & Parts sales ($46 Billion in 2010)
*Detroit Free Press, Huffpost Detroit, Motor Trend

5. U.S. Auto Market
• The Big 3 Renamed
– The “Detroit” 3
– G.M. & Ford Still in the top 3
• Government Bail Out of U.S. Automakers
– $62 Billion Bail out worked
• Biggest Surprises of 2012
– VW 35% Increase in Sales
– Gas prices remained under $4 per gallon ($1.06 Per Liter)
• R$2.10 Por Litro
– December best month of the year

6. Top Selling Models in U.S.
2012 2008
• Ford F-Series • Ford F-150
• Toyota Camry • Chevy Silverado
• Chevy Silverado • Toyota Camry
• Honda Civic • Honda Accord
• Toyota Corolla • Toyota Corolla
• Honda Accord • Honda Civic
• Chevy Malibu • Nissan Altima
• Ford Fusion • Chevy Impala
• Ram Pick-Up • Dodge Ram
• Honda CR-V • Honda CR-V
*Examiner.com *AOL Autos

7. Chinese Auto Makers in U.S.
• Have not met safety and quality standards to compete in
U.S.
• Chinese Economy has slowed
• Analyst estimate China is 5-10 years from selling in U.S.
• Visionary Vehicles LLC.
– Named North American Distributor of Chery in 2006
– Chery backed out of agreement after getting initial entry into
U.S.
– Visionary and Chery are in a legal battle for $1 Billion
*Huffington Post, Forbes.com

8. Chinese Auto Makers in U.S.
• My Opinion
– History dictates the entry of small imports
• Toyopet Crown
– Economy downturn slowed potential
– International Relations/Politics
– Safety and Quality issues
• Do not meet US standards
– Americans are picky!!
– Styling/Appearance
• See Previous Bullet

9. U.S. Franchised Dealers
• 17,540 Franchised Dealers (NADA)
– 1947 = 45,500 Franchised Dealers
– 2000 = 22,250 Franchised Dealer
• Average Annual Sales 805 Units
– Previous Record 784 in 2005
• 36,418 Independent Dealers (NIADA)
– 2006 = 44,321 (New 21,495)
– Independent Dealers dropped 18% 2006 – 2012
– Franchised Dealers dropped 18.5% in same time

10. U.S. Auto Dealers Marketing
• Newspapers
– Increased 14% in 2012*
• Television
– More OEM Driven
– Some dealers budget for, most use regional ads to piggy back
• Internet
– The market place shrunk
– All customers are internet
• Consumers spend 18-19 hours researching vehicle online**
• 60 percent of the shopping time is on the internet
*Advertising Age
** Polk

11. U.S. Auto Dealers Marketing
• Social Media
– .40 of every dollar goes to digital media
– Digital Media is where it is at now
• Social Media is a Hot Topic
– All OEMS have a large presence
• BMW – 12.5m Facebook Likes
• Mercedes Benz – 9.5m Likes
• Porsche – 5m likes
– Many Companies Offer Social Media Management
• Dealer.com
• Digital Airstrike
• Force Marketing

12. Internet Leads
• It could be argued that there are no more walk-ins
– Not all customers make contact via web
– Where should we spend our marketing $$$
• Consumers Research via internet
– 18-19 hours according to Polk
– 97% Use Online Media to shop*
• What percentage is a true internet lead?
– 64% Automotive buyers shop via internet**
– 88% will visit dealer website before going to test drive**
– In 2006 5.7 Million cars sold or 32%***
*PR Newswire
** JD Powers and Associates
***Jupiter Media Mix (JMM)

13. Advertising Spending

14. Dealership Sales Team
• In 2010 the average dealership employed 50 sales staff
– Typical ratio is 1 sales person per 10 deals
– Floor Sales normally out weighs Internet Sales
• Traditional or Floor Sales
– Receive phone leads
– Walk-Ins
– Repeat and/or Referrals
• Internet Sales
– Work Internet Leads
– Some would also take Walk-Ins
– Some phone calls
– Repeat and/or referrals

15. Dealership Tools
• Dealership sales team have 3-4 main systems
– CRM
• Maintains customer information
• Contact reminders
• Some have desking tools
– Appraisal Tool
• vAuto
• First Look
• Others
– Submission Tool
• Dealertrack
– DMS
• Reynolds
• ADP
• Dealertrack

16. Dealership Tools
• Desking System
– ePencil
– Others
• Service Scheduling System
– xTime
– Time Highway
• ILM
– Dealer. Com
– Vin Solutions
– eLead
– Dominion

17. Dealerships BDC
• BDC’s are sporadic
– Dealerships have not justified the cost
– Traditional Sales Persons handle some aspects
• Offsite BDC’s
– Offer dealers cost effective BDC
– No dealership experience hinders
• In Dealership BDC’s
– Phone experts
– Lead Response time monitored
– Only deal with “digital” customers

18. Q&A
• Obrigado!!